Best Practices for Data Rooms

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A well-organized repository for your virtual files is essential for every business, whether you’re pitching investors, closing a M&A deal or sharing information with partners. Investors don’t have the time to sort through a messy document dump or deal with a variety of inconsistently formatted files. They want a clear professional presentation of sensitive information that is easy to browse on any device.

Follow these best practices to improve processes and provide third parties the most up-to date information.

Uploading and organizing files

Utilize operating procedures to determine which documents should be placed in the VDR and how they should be named. A consistent naming system and folder structure makes it easier to manage and find documents. Tags and metadata add information to documents and make it easier to searching and filtering.

Permission Settings

Set permissions for various kinds of users (admins corporate employees clients, investors, etc.). To prevent unauthorized access, and increase the security of your repository. If you have highly sensitive or private information, a fence view mode is an excellent option to prevent users from downloading, printing to save, scanning, or taking screenshots of specific documents.

Monitoring Activity

Ensure that you have a tamper-proof audit record of activities within your VDR by setting up customizable reports that get sent to project managers at the top of the chain on a recurring schedule. For example, FirmRoom provides reporting that includes detailed analytics for documents that make it easy for teams to monitor the amount of interaction with the repository. This will allow for better follow-up as well as streamlined communication with stakeholders.